2021 Big White Real Estate Market

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The 2021 Real Estate market has been like never before, and the prices of homes have experienced a huge jump overall with some of the lowest inventory we have seen. Big White is no exception to this shift, and what we can expect to see as a result of this crazy market!

Big White real estate market QVA

How has the Big White Market Changed in 2021?

Before the pandemic, Big White had a very balanced market, I would even say it was a buyer’s market. Due to COVID, Big White sales have started to explode and that has caused inventory to dry up.

 

 

 

What has caused this shift in the 2021 Big White Real Estate Market?

 

  • The Rental Market is Hot 

Many factors have contributed to the shift we are seeing in the 2021 Big White market. The pandemic has caused many of the people who currently own Big White properties to rethink listing in the current climate. Since Big White is a winter recreational resort, they are usually secondary properties and tend to bring in great rental income, especially now that the rent has gone up due to more people staying local and travel has become less frequent.

Big White Condo #201 - 80 Kettle View Road

  • Out of Town Buyers

Another major factor in the low inventory is a high number of out-of-town buyers that are ‘safe-haven’ buying. Big white is a great place to self-isolate and offers guaranteed rental income. The pandemic has caused interest rates to go down, and that has a huge effect on the movement of Big White properties as well.

  • Low-Interest Rate

Because the interest rate is so low right now, it is making recreation properties more serviceable in terms of debt load, and this is causing buyers from all over a jump on the opportunity!

  • Small Market

Big White has always been a smaller market and it is a great selling point. A lot of people buy at Big White because it provides a great feeling of community, has some of the best Ski-in & Ski-out properties, and is close to major cities. Big white being a small resort has caused it to be very reactionary to the changes we have been seeing in the 2021 Real Estate Market overall.

How do you think Big White will continue to be affected?

Big White has always been a more affordable option in the Okanagan, but recently it has exceeded the last market peak in 2008. In the past 8 to 10 years, there hasn’t been much development, and I predict this will change in the next 2 to 5 years.

Prices at  Big White are back up but there have not been any new builds, meaning no new inventory has been added to the market in almost a decade! That sounds like an untapped opportunity. I think you can expect to see new developments and expansion at Big White.

 

 

Okanagan Real Estate Market Q&A

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Entering the current Okanagan Real Estate Market can be a scary yet positive experience. It’s important to be informed, here are questions you may be asking yourself.

Why is it important to use a realtor when buying or selling in this current Okanagan market?

Our current Okanagan Real Estate market can be tricky to navigate! An experienced Realtor can provide you with the knowledge you need to make an informed decision.  But it’s not just as simple as picking any Realtor.  Trust is key – get to know your Realtor, let your Realtor get to know you. Choose a Realtor that you are comfortable communicating with, one that has the knowledge, experience, and dedication required to guide you through the process. At VREG we are committed to providing you with the best service possible!

  • Accountability
  • Dedication
  • Integrity
  • Knowledge
  • Perseverance
  • Professionalism
  • Understanding

What are the risks of unconditional offers?

There can be many risks associated with unconditional offers.  Are you ready and willing to accept those risks?  My go-to response with unconditional offers is “Just don’t do it”.  However, having said that, in some instances, it may be an option for you. It’s really dependent upon each unique situation.

Before making such an important decision you may want to consider:

What if something goes sideways?

What if the sale of your current home collapses and you are not financially able to carry the cost of both properties?

What is there are issues with the home that could have been discovered in a home inspection (i.e. outdated plumbing or wiring, asbestos, former grow op)

What if you are preapproved but your financial situation changes suddenly?

What if the bank requires an appraisal and the appraisal comes in lower than expected?

 

These are just a few things to consider and you should always discuss these and other risks with your Realtor before making an offer.

 

What are your tips for first-time homebuyers?

Your first home is usually your first big investment. It’s an exciting time but it can be overwhelming if you’re not familiar with the process.

First and foremost choose a Realtor to guide you along the way! Your Realtor can aid you each step of the way and make things much less stressful for you.

 

Get preapproved – Before you start looking for that new home, make sure you know exactly what you can afford.  The last thing you want to do is find the perfect dream home only to discover you cannot qualify to purchase it.

 

Create a budget – There are other costs involved than just purchasing your home. Your Realtor and mortgage professional can help you determine the other costs you will need to consider. Legal fees, Property Transfer Tax, Utilities, Taxes, maintenance, strata fees, etc.

 

Determine what your needs and wants are – create a wish list and discuss it with your Realtor. Some things to consider while making your wish list:  Are there certain neighborhoods you prefer? How many bedrooms/bathrooms are a must? Are you willing to look at a fixer-upper or does it need to be move-in ready? Your Realtor will help you narrow down your wish list and save you valuable time by looking at the appropriate properties for you.

 

 

Multiple Offers in the Current Real Estate Market

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With the hot Kelowna Real Estate market in full swing, multiple offers have become the norm as buyers compete to secure a property.  Being the winning bidder in a multiple-offer situation takes strategy.  We talked to our in-house expert, Tracey Vrecko, who has been helping buyers and sellers come out on top in this crazy market.

Why are so many homes going into multiple offers?

This is simple supply and demand.  There is so little inventory of homes for sale in Kelowna and West Kelowna so when a home goes on the market, multiple buyers are competing for it. There are a large number of buyers coming in from out of town pushing demand even higher.

What is the strategy when working with sellers looking to sell their homes in Kelowna?

Exposure is key to realizing top dollar for your home in any market, especially when looking to generate multiple offers.  When the listing hits the market, typically a seller will want to pick a date to review any offers.  With so many buyers from out of our market area, you want to give enough time from when the property is listed to when you are looking at potential offers.

 

When presenting a home for sale in today’s market, marketing is so important to attract buyers and highlight features that show value.  We offer several ideas to prepare the home for sale and offer full marketing packages that include:

  • Clear photos of each room and outdoor area
  • Floorplans with room measurements
  • VR tours with hotspots detailing features
  • Digital feature sheet

Also, any additional information you can provide to the buyer will help buyers prepare for multiple offers.

When working for a home buyer, how do you win out against other bidders?

One key thing to consider when you are competing against other buyers on the same property is to make your offer as clean as possible while still protecting yourself.  Try to complete some of your due diligence before making the offer so you can limit the number of conditions such as:

  • Financing
  • Home inspection
  • Reviewing of title, property disclosure statement, city file, strata documents, etc.

Home buying and selling can be emotional, so it is also a good idea to write a cover letter with your offer.  It could help tip the scales when a seller knows who will be occupying their home. I have even seen pictures of potential buyers in some offer presentations.  Any little bit helps.

Find out what possession the sellers prefer.  Being flexible with dates could make your offer more appealing to the sellers.

There are other strategies with respect to deposit and price that can make or break you from being the winning bid.  Each situation is different, so, having a professional realtor with experience in working with multiple offers representing you to advise you on price and deposit.

Multiple offers can be overwhelming for both buyers and sellers and there can only be one winning bid.  The team at Vrecko Real Estate Group has helped many buyers and sellers navigate through this very active market.  Using a professional Realtor is more important than ever to advise on your largest and most important investment.

Luxury Home Sales in the Current Real Estate Market

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The current real estate market in the Okanagan is booming and at an all-time high. Following the largest luxury home sale in Okanagan, we asked our luxury expert Quincy Vrecko what this means for luxury homes.

1570 Antler Court QVA luxury Front of houseQuincy, in your opinion, how is the current market affecting luxury home sales?

The average day on the market has dropped substantially, so instead of luxury homes taking perhaps a year to sell, they’re selling within 3 or 4 months. This is because there is a lot more pent-up demand. Because of that demand, we’ve seen prices notch up, and we’re also seeing multiple offers situations which is something we haven’t seen in the luxury market before.

4-180 Sheerwater-Quincy Vrecko Kelowna Luxury Real Estate

With this high demand, what are the key things people look for in a luxury home?

The first thing people look for is lake views, that’s a big one. Swimming pools are also a big point for people coming from Alberta or the Lower Mainland. Additionally, people look for a three-car garage, privacy, and of course like anything else: location. Those are the biggest key factors in the search for a luxury home. Of course, the finish and quality of the build, a reputable builder, and similar homes surrounding them is really what defines that luxury market.

Where is that market coming from? Local? Out of town?

Right now, the biggest push we’re seeing for luxury home sales has been from the Lower Mainland, where people have been able to sell their homes for a fair bit of money, which allows them more freedom coming up to the Okanagan. In the last 2 months, we’ve also seen a push coming from Alberta, which hasn’t happened in quite some time because of the slowing of their economy. But with the housing market doing quite well in Alberta and the housing market doing well in the Lower Mainland, this is what I call the perfect trifecta: We’ve got 2 large markets, with populations of 4 to 5 million, feeding into the Kelowna market driving the values up.

147 Upper Canyon Drive Quincy Vrecko Kelowna Luxury Real EstateWhat do you think is the future of luxury home sales?

The future of luxury home sales, from a listing point of view, is strongly affected by things getting more technologically advanced. Virtual reality and 3D have been playing a huge role in today’s market. Not just because of COVID-19, but because the buyers are becoming savvier, and more comfortable with technology. Floor plans and layouts are a very big drive in the luxury market right now. Going forward, as far as the luxury market goes, waterfront is going to be a big push. As they’re not making any more, people’s options and choices are very limited. And, like everything else, it’s going to be about the location, lake views, the fit and finish and automation of the homes, and garage space, and that’s what’s going to continue to drive that luxury market in the future. When it comes to where people are going to be coming from, I think we’re still going to see a very strong push from the Lower Mainland.

We’re seeing Alberta, as I mentioned, but we’re also seeing Toronto starting to push this market, whether it be vacation homes or retirement homes. With everything that’s happened in the world, with COVID-19, people’s habits and how they’re working have changed. This has allowed people the freedom to move from these larger centers to smaller centers such as Kelowna, as they don’t have to go to an office and they can work from home.

Lots and New Builds in the Current Real Estate Market

The current real estate market has been anything but quiet, things are moving fast. But what does this mean for lots and new builds? We asked some questions to our lot and new build expert Chris Ward, who recently celebrated 30 years with RE/MAX. His expertise shone some light on this confusing yet exciting market.

 

Tell me about the differences you’ve noticed in this 2020-2021 real estate market when it comes to lots and new builds.

Last year, in 2020, lots were stagnant and inventory levels were not tremendously affected. With the advent of COVID-19, particularly this year, inventory levels of existing homes increased and the focus was turned towards building lots, and they started to disappear at a tremendous rate. Right now, anything that is finished is probably sold or has an offer on it.

 

If lots are going so fast, how does this affect new builds?

The challenge for the builders, because of COVID and a variety of other manufacturing issues, is that lumber is up 140%. Everything tin related such as furnaces are up 30%. Lumber and building supplies escalation clauses are being put in place in purchase agreements. This is a significant change and slows building down. Because of the increased cost, we haven’t seen homes come onto the market quite as quickly as the lot sales indicate, but they’re coming.

 

When should we be able to see the new builds from these lot sales?

I would say probably in the fall. It usually takes 6 to 8 months to build a 2500sqft house, depending on where you’re at. So, if lots have sold in March, they’ll be ready by the end of the year. We should see lots of new home products, finished products, on the market towards the end of the year and the beginning of next year.

 

In your opinion, was it a better investment to build yourself in the past compared to today?

Good question, because everything went up, houses are selling over the listing price, so what does that mean for new builds? New builds go in at a fixed cost, so probably will still be the same. There are times in the market when existing is cheaper than built, and there are times when built isn’t necessarily cheaper but there’s more of them available. I’ve been selling new products since around 1991. In 2003-2005, I was getting builders to buy lots, selling houses out of a catalog. Because at the time you could find lots.

 

What else has surprised you in the current real estate market?

In January we had a 30-lot subdivision for sale with only 3 deals on them. Now, they’re all sold, buts it’s mostly due to out-of-town builders. The market for the Okanagan became much more widespread than it was before. We used to get 6% of buyers from the coast, now the numbers from the lower mainland have surged, and along with them came the builders. Lots of different trends have happened, not since the start of COVID, but mostly since the start of this year. 2020 was not that affected, we still had good inventory levels. It all happened in 2021, I think because COVID has settled in and people don’t really see an end in sight, so they’re changing their focus.

 

What would be your advice for people looking to buy a lot and build in this market?

I still think it’s a really good idea. What you do have to understand is that you might not be able to get a definitive price, and if you’re a high ratio buyer, that’s not a safe place to be. If you have 20% down, it’s a really good place to be. But you do need patience because they’re having a hard time getting supplies, it won’t be finished for months. What used to take 8 months now can take 10 to 12. So as long as you’re not in a rush and have a place to stay, you’re good to go!